Cisco in Deep Crisco? IDG Brasil Confirms Tax Axe on Net Threat

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“Cisco Networking Academy will change the face of the Third World,” a friend of mine — a sort of economic hitman type — once prophesied. Accumulated goodwill would certainly come in handy right about now.

Receita Federal e PF fazem operação para combater fraudes em importações: IDG reports that the Brazilian subsidiary of Cisco is the tech firm that has fallen into the tax-evasion Crisco for deep frying today.

Brasília – Esquema de fraude envolve empresários brasileiros e a subsidiária da Cisco Systems, informam fontes ligadas às investigações.

The fraud scheme involves Brazilian business executives and the Cisco Systems subsidiary, say sources close to the investigations.

But not necessarily the U.S. parent, I am hearing the feds here carefully implying.

See also

A Receita Federal do Brasil, em conjunto com a Polícia Federal e o Ministério Público Federal, iniciou nesta terça-feira (16/10) a operação Persona, com o objetivo de desarticular um esquema de fraude envolvendo empresários brasileiros e a subsidiária da multinacional norte-americana Cisco Systems, informam fontes ligadas às investigações.

What we already know.

Noventa e três mandados judiciais de busca e apreensão e 44 ordens de prisão temporária expedidos pela Justiça Federal de São Paulo estão sendo cumpridos por 650 servidores dos órgãos envolvidos na operação nos Estados de São Paulo, Rio de Janeiro e Bahia.

More of what we already know.

Procurada pela redação do IDG, a assessoria de imprensa da Cisco Brasil disse que ainda não tem informações para fornecer.

Sought out by the IDG newsroom, Cisco Brasil press office said they have no information to offer yet.

From a technical public relations point of view, this should be an interesting exercise in live-fire crisis communication.

Whatever you do, avoid issuing “banana-republican guilty pleas” — filibustering while changing the subject, often accompanied by the rhetoric of hysterical virginity (political persecution mania complex optional, but often overused).

That would be my advice. Not saying anything until you figure out what to say might actually be a very good start. “We are still carefully and thoroughly gathering information” is actually not a bad gambit.

I mean, if I know the PR person as a careful and thorough professional — and there are actually many of those in the field, I always like to add — I am perfectly willing to accept that. For a reasonable period of time. You?

Além da sonegação fiscal, com preços tão abaixo do mercado, o esquema trouxe prejuízos para a concorrência e redução de mão-de-obra no mercado de trabalho.

Along with the tax and customs evasions, with prices far below the market, the scheme harmed competition and reduced opportunities in the job market.

You wonder sometimes whether the home offices even know what their far-flung outposts get up to. Ever read Coetzee’s Waiting for the Barbarians? Not every far-flung multinational tech empire is toured with frequency by the Emperor Himself, the way Bill Gates tends to do.

If I were the bigshots back in Silicon Valley, I might well be thinking of washing my hands of these locals to whom I have (foolishly?) given the keys to my brand. Cheerfully clean up the mess with the tax man. Fire my local HR consultant and take more care in my next executive head-hunting expedition.

Just a thought.

Oh, well: More soon.

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